Square Mile: Q1 fund manager sentiment

Savage rotation

clock • 4 min read
Jake Moeller, Paul Angell and Alex Farlow of Square Mile
Image:

Jake Moeller, Paul Angell and Alex Farlow of Square Mile

Rising inflation, rising interest rates, weak supply chains, rising energy prices and the dreadful situation in Ukraine have created a near perfect storm for markets.

These factors, combined with a savage rotation within investment styles have led to one of the toughest market backdrops for a long time.  Q1 2022 witnessed significant divergence in equity market performance: UK equities were up slightly by 0.5%; UK smaller companies were down 11.4%; Europe was down 7.4%.  Fixed income provided little protection with UK government bonds and sterling corporate bonds down 7.2% and 6.6% respectively.  This divergence was also evident in styles. Global growth was down 7%, while global value was up 2%.  In the IA Global sector, there was a 44.1% differenc...

To continue reading this article...

Join Investment Week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Funds

The ETFs aim to overcome traditional yield shortfall by using multi-factor investing.

Invesco launches two ESG credit ETFs

Invesco has launched two new ESG ETFs that provide investors with access to investment grade fixed-rate euro-denominated unsecured corporate bonds from global issuers.

clock 29 June 2022 • 2 min read
The ETF will be available to investors on London Stock Exchange for a total expense ratio of 0.35%.

Franklin Templeton launches Catholic EM sovereign debt ETF

Article 8 ETF for European investors

clock 28 June 2022 • 1 min read
Alex Wright of Fidelity International

Fidelity's Alex Wright: People have misunderstood OMV Russia exposure

'Sentiment is overly pessimistic'

clock 23 June 2022 • 3 min read
Trustpilot